Big U.S. banks have rallied in recent months amid rising interest rates but, if the Fed carries out its plans, there is room for them to keep rallying

Aaron Back

For American banks, a pie-in-the-sky scenario has just moved closer to reality.

While struggling with ultralow interest rates, major banks have also been publishing regular updates on how well they would do if interest rates suddenly surged upward. These scenarios haven’t been taken too seriously, until now.